Member Info for RMR1969

Thanks Montyboz - I take it then that you believe we may get another RNS prior to 'the' RNS detailing some form of resource upgrade, appreciate that, you would certainly feel that may be due, particularly if AP have indeed been working on our behalf, depending on that upgrade, and further to the very interesting research you have shared, it could be considerable and in itself re rate the share to multiples of today I guess.

That would probably be the best case scenario for us all, a re rate and then an offer.

Thanks, have a good day.

Monty - could very well happen of course, interested more in your thought process on that though, how have you come to that view? Your post comes across like you have some form of rationale behind what you are saying.

Cheers

nice job Lovelyboy!

not everyone Jack689 - I am waiting comfortably and patiently, content in the knowledge that we have multiple parties interested in EUA, several non binding offers already submitted, we have moved onto discussions regarding a binding deal, we have UBS and DLA Piper working on this for us, we have a very experienced Board, both in terms of mining and M&A, metal prices continue to rise week by week, the DFS approval for WK has been formalised, we have had extended licences issued at WK, flanks at MT were signed off some time ago.........need I go on?

Great to finally get the news confirmed albeit we knew it was coming, it was merely an administrative thing but as we know such things can go wrong sometimes of at least falter. Very pleased this is all now formally announced.

No great detail in there as to be expected I guess, I am sure whoever is 'at the table' has sight now of the detail, most likely had it previously to be fair. Could this now be the trigger to get things moving from non binding to binding? It will certainly play a part of that there is no doubt.

The SP will do it's thing but as someone else said I think we are at a bit of a stalemate in this range, most who are going to buy have already taken their position, maybe some trading but not much to be made doing that to be honest, so here we sit.

I think what I take most from the activity and announcements in recent days is that everything we believed to be happening is indeed happening, we have had some great confirmation that everything is still all moving along nicely, yes of course we would like it to be faster, as would the BOD, they said as much in the last RNS, but with a multinational, complex and very large transaction, it was never going to be simple and quick, we have been saying that on here for months now.

Just good to know wee are edging forwards and the pieces are falling into place, should hopefully silence the doubters a little if nothing else.

In until the end.

MrYFronts - do not disagree at all with you to be fair, I just think that bearing in mind the situation, and how things can often work in big business and behind closed doors, it would not be hard to imagine a scenario where the information was kept under wraps for a 'bigger purpose.'

Right or wrong, there are ways and reasons if they want. we all know it happens like it or not, and if we get a big deal here, who is going to be bothered about it anyway.....?

Dore, I am unclear what you mean.

It was far more than a 'holding RNS' - a holding RNS would have simply stated the FSP was ongoing, this one told us things we didn't previously know, we now know as a FACT that there are multiple parties interested in EUA, we know for a FACT that a non binding offer has been made for the company as a whole and we know for a FACT that there have been other non binding offers of varying transaction types. We also know for a FACT that discussions regarding proceeding to binding proposals are continuing, we knew NONE of that previously.

With regards to the DFS, I have no clue what is in it whatsoever, how could I?

MrYFronts - 12 working days to be fair and that includes all the Russian holidays over NY, so in reality it ain't that long really is it, especially when considers everything going on in the world at the moment?

IMO it could come any time, equally however it could be being held back as it forms part of any deal or agreement, those saying 'it is price sensitive, they have to release it the minute it is available" - are being a little naive methinks.

I am sure that should they wish, the BOD could have some dispensation to release it all in one go, I am certainly no expert in such matters but it could make sense.

Dore123 - how on earth are we being 'kept in the dark'?

It was just a matter of a few days ago that we received a very positive RNS regarding an update on the FSP, we could not have asked for a better clarification at this point......

I just don't know what some people expect these days, here we have most likely a multi national, exceptionally complex and highly valuable asset sale being completed during the worst worldwide pandemic in over a century and after 3 days without an update some people are still not satisfied!

Just try and imagine the challenges involved here, travel restrictions, language differences, huge law firms, Investment Banks, the inevitable paperwork, BAU, potentially governmental involvement, regulatory matters, notwithstanding that little old pandemic sweeping the world killing hundreds of thousands and isolating millions of others.......

Beggars belief, it really does.

must be someone out there who has a view on the last 2 UBS RNS's - 2 sold yesterday, 3 sold today - there has to be a reason for this it is obviously not a 'normal' trade, I am sure there is a sensible and logical explanation and I would love to understand......thoughts?

Just going through this in mind again and wanted to lay it out for comment / discussion, I have my own view.

1. We know DS stated in his interview in Oct 2019 that the size of the banks involved in potential deal gave an indication of what they were seeking - "they won't bring us small deals."
2. We assume that the ACF report released on 3rd Feb 2020 was an early indication of where the BOD felt the assets should be valued at that time (56-60p). We also know that this report described itself as highly conservative.
3. We know that since that report was released we have had the flanks licence issued, a further licence at WK and that metal prices have increased further and continue to move north.
4. We know UBS have been involved for over a year 'managing' the process and that 3 months after the official FSP was initiated DLA Piper were brought on board (something changed for that to happen, we know not what exactly, but something triggered that). My opinion is that it was then we had started to receive offers which the BOD believed to be reasonable enough to negotiate.
5. We know that the company is in the process of pulling together many years of data to prove up resources, we believe with the help of AP.
6. We know that 7 months into the FSP there have been discussions with multiple parties and that a number of non binding offers have been made for the whole company or some form of other transaction type.

Now, we must all agree that any interested party will know what the BOD are expecting, we must all agree that any interested party will be acutely aware of the value of the assets, we must also agree that any interested party will appreciate that these assets are becoming more valuable by the day and that isn't likely to change any time soon.

UBS are in charge of managing the offers, interested parties will have approached them in the first instance, now they are not obliged to accept any offer tabled, they would merely throw it back, else any Tom, Dick, or Harry could chuck in a silly offer and waste valuable time, hell, I could make one, 'silly' offers would be rejected immediately, surely we can agree to that?. If we do accept this as true then we have to assume that all the offers currently tabled are there or thereabouts, they at least meet the minimum threshold and are worthy of submission, so for me that puts them at least around the 60p mark, most likely more based on the nature of the ACF report and the changes mentioned above since it was released.

The unknowns are how much resources we actually have, exactly how many parties have shown interest and are in the running, and how much of a premium they are prepared to pay to secure the last consolidated palladium play with the lowest extraction costs in the world.

I have stated before, and I believe even more so now, that it will be a consortium style bid involving several parties with EUA retaining an interest, IMO there is a minimum 100% upside potential from here.

totally right LSE CD, either do it or don't, but frustrating when people just talk about what could have been, I should have put all my money from here into NYCT at 10p, sold at £10 and ploughed back in here in the mid 20s, but I didn't, I could equally have ploughed it all into OMI at 39p and now be sitting on a 30% loss, but I didn't.

In until the end!

Good post Mike

It always makes me laugh when people talk about the shares they have ‘missed out’ on. We all do it to a degree and convince ourselves we would have put £xx in this company and £xx in that company once we have seen them rise 50% or more. We don’t tell ourselves about the £xx we would probably also put in a company which has dropped!

It’s just the way it is, everyone now has the right and ability to withdraw their funds and place their money in those investments if they are so confident, so crack on and do it. You may be lucky and make more, you may be able to get back in here later with the profits, but you may also lose money and miss out. Your choice entirely, no point moaning and complaining on here.

We have had the update so many were requesting, and it CONFIRMED all the things we had to that point only hoped and believed - not sure what more we could have asked for, it was a very good RNS in my view.

In until the end!

Calamari

Where has it been stated that the BOD were only ever interested in a complete sale of the company and no other offers.

You are making it up and stating things as fact when they are simply your views.

You are wrong again.

Calamari

You cannot say it is ‘clear’ and state it as fact like you do, you have absolutely no idea what offers have been received and the views of the BOD to them.

Definitely with you both on the more than 2 non binding offers, I am also reasonably confident that all offers submitted to date will be 'sensible' - any cheeky lowball approaches would have been quickly returned IMO, bidders would have been clear as to the range that the BOD would seriously consider through initial conversations with UBS, and no one is likely to want to waste their time and effort putting together what is most probably a considerable amount of information required at even this stage just to have it thrown right back.

I believe that within any non binding offer businesses have to detail how they could finance such a deal so as to be taken seriously, that is a level of commitment even at this stage which means they are truly interested.

We got a little excited a few weeks ago when NN minutes talked about 'financing a transaction' - I know there were a number of views at the time suggesting this was nothing to do with EUA but you have to admit the timings fit.

The following is an example of the contents of a non-binding offer:

Description of the suggested structure of the transaction:
The enterprise value on a debt-free, cash-free basis
The underlying assumption of the valuation
The sources of financing and the timing and steps required to secure funding
The strategic rationale for the investment
Due diligence requirements
A list of unresolved material issues
All conditions that the buyer anticipates for the submission of the binding offer
A confirmation that the offer was approved by the investment committee or executive board of the buyer
Any other relevant information that may be relevant to the seller in assessing the offer

By deciding on whom to admit into the next round, the process officially enters the second phase. This phase is determined by the opening of the virtual data room as well as intense due diligence done by the prospective buyers and their advisors. It usually covers a range of four to eight weeks and is governed by the process letter II. Towards the end of this phase, the buyers, given continuing interest, must submit their binding offers, which determine who will enter the final negotiation phase.

We could have a few weeks to wait yet, or a buyer could just decide to dive straight in.....patience is again the key word.

Just a reminder of the bit from my post on 6th January.......

"Listen also to the point regarding 'no guarantee of a deal being done' at 26.55mins and form your own view." Also check out Andrew Scott's smirk when the camera pans out.

https://www.proactiveinvestors.co.uk/companies/news/905934/eurasia-mining-s-dmitry-suschov-discusses--strategic-options--for-its-mining-assets-905934.html

PartyPooper - I agree, when I read the RNS first thing that was the phrase that immediately jumped out at me - 'engaged with a wide range of parties' - I actually re read it before moving on with the rest of the note.

As you say, it suggests to me also that there is interest from outside the immediate and obvious traditional mining companies.

If, as I believe that there have been at least 3 offers, maybe more, and this is based on the fact they say in the RNS 'offers' and also reference 'possible acquisition of the whole Company as well as other transaction structures' - this reads as more than 2 to me.

So, if we go with 3+, just think about how many companies / businesses / parties out there could actually afford us presently or would realistically be in the market for a PGM company, there ain't many, which to me suggests all the big boys are interested.

I could be challenged that I am just looking at the positives here and making bold assumptions, but nonetheless I think it is reasonable based on what we have just been told.

So let me get this right, for the last few weeks people have been complaining that we have had no update from the BOD, that it is disrespectful, that surely they could simply just let us know the process was still ongoing etc etc......very unfair IMO and I said as much previously.

Today we get an RNS:

1. confirming the process is ongoing
2. confirming they have engaged with a wide range of parties (interesting use of word 'parties' maybe!)
3. telling us they have received offers (plural)
4. stating that these offers include possible acquisition of the whole Company as well as other transaction structures (therefore more than 2 IMO)
5. explaining that Covid plus festive holidays had impacted the timelines (as we believed to be the case and is very reasonable)
6. and that discussions regarding proceeding to binding proposals are continuing.

Yet despite the above, which is more than many expected or hoped for, some people are still not happy! What more could we have asked for?

For those that have not seen Monty's post earlier I respectfully suggest a look and I am annoyed with myself for falling into the 'trap' he mentions especially as I am heavily invested in another miner GGP. Now I am not cross ramping, but it is a useful example. They have recently issued an MRE detailing 4m oz of gold, however everyone knows and agrees (including experts) that this is really just the tip of the iceberg, they have a Tier 1 asset on their hands and ultimately it is expected that they will eventually prove up closer to 15, 20 maybe even 30m oz. They have initially only released the MRE at the level they have because it is all they can do at this stage, but the mine is still open on 4 sides, they still don't know the full extent and only further exploration will determine this.

We most likely have a very similar scenario here.........personally I welcome the news and am very happy with it.